One of 2014’s top stocks was Amaya Gaming Group Inc. (TSX: AYA). It started the year off trading at a little under $8.00 per share, but by December, it had reached over $38.00 per share. That $30.00 increase per share over one year makes this one of the best stocks across the entire market.
But in December, the stock lost close to $10 per share because of reports that Quebec’s securities regulator was investigating the company over its acquisition of PokerStars and Full Tilt in June. However, I don’t believe that this investigation is going to go far and for those investors looking to start a new position in a company, this couldn’t have come at a better time.
Here are three reasons you should start acquiring Amaya now.
1. It’s off its all-time high
One of Warren Buffett’s key philosophies for investing is that you should be greedy when others are fearful and fearful when others are greedy. Right now, there is fear with Amaya and that means it’s a great time to buy.
The stock went from $35 to under $29 immediately on the news that the regulator was investigating. And now it is a little under $28 per share. That means that the stock is really in an attractive place to buy.
Once the investigation ends, I truly believe this stock is going to rise. It epitomizes growth stocks and that leads me into my second reason you should buy.
2. It’s going to grow a lot more
Buying Full Tilt and PokerStars was an investment for the future. Right now, it is illegal in the United States to play online poker. And in 2011, it actually started to really enforce that law.
However, there is movement to start getting rid of the law. In Nevada, Delaware, and New Jersey, there are experiments with offering online casino games. As time goes on, other states will join the hunt for additional revenue and that means it will become legal.
That puts Amaya in a really lucrative position to dominate the online casino business in the United States.
Is the time right?
I believe that this company will be trading at $45 by the end of 2015. Considering its two new poker sites make over $400 million a year in profit and are expected to grow in the coming years, I think Amaya is still a really lucrative opportunity for those who want a taste of fast growth. However, if the investigation shows that there were some illegal talks going on, that could further hurt Amaya.
Therefore, you have two choices. Buy now because the price is so low or wait for the announcement to come out that nothing went wrong. When that happens, the stock will rise rather quickly.
If Amaya is a little bit too risky for you to invest in, I think you might really like this report my colleagues put together on the top stock of 2015. It is going to have some really great growth in 2015.
